Broadband World Should be Flat

Victor ChiuVice President, Telecom Labs

Chunghwa Telecom Aug. 12, 2006

2

3 National Development Plans in Taiwan

2002 2004

U-Taiwan

2003

M-Taiwan

e-Taiwan project initiated in 2002 M-Taiwan plan in 2003 BB plan in 2004

6 million broadband households by 2008. Plateform for Broadband applications and services. FTTH and WiFi and Wi-Max

e-Taiwan

6 million broadband users

e-Society

e-Governm

ent-e-

Ind

ustr

y

e -Opportunity

e-Taiwan

3

Broadband Taiwan Broadband Chunghwa Telecom

CHT Broadband MarketBroadband market share

~ 87% (~4 million)Fiber coverage over 90%

in metro area

Household (2006/02) 7.3 million

Household PC penetration (2005/05) 81.4%

Internet bandwidth (2005/12) 109Gbps

BB plan in 2010 6 million broadband Users

4

176

137

117

98

3730

8 6 6

98

4740

29

7 5 5

0

20

40

60

80

100

120

140

160

180

Per

100K

bp

s A

ccess F

ee/M

on

th (

NT

$)

ADSL Access Fee

HiNet Access Fee

2000 2001 2002 2003 2004/2 2004/4 2004/6 2004/8 2005/4

512K

1M

8M

12M

SpeedFee

Evolution of Major Access Speed(Down Stream)512K1M2M8M12Mbps 20M100Mbps

Access Fee per 100Kbps in CHT

2M

CHT ADSL(12M) per 100Kb/s per Month Access Fee US$0.193

5

CHT offers Triple Play Services on IPTV

In March 2004, CHT has launched IPT, a bundled services including Video on Demand (VOD), Pay channel, live TV and other applications are offered.

TV(A/V Stream)

PC(Data)

Telephone

(Voice)

STB

ATU- R

DSLAMDSLAM

Broadband IP network

Multimedia service system

Internet

Telephone exchange

Voice/data splitter

6

CHT Network Operations System

Service Service ProvisioningProvisioning

Customer InterfacesCustomer Interfaces

Problem Problem ManagementManagement

Network Network and and

Quality Quality ManagementManagement

Customers

Integrated CHT-OSS

ATU-RRDSLAM DSLAM BBRAS Router

Server

CabinetSplitter

Integrated NGOSS-based CHT OSS is for multi-vendor and various NEs

Access : ADSL, FTTBCore : ATM, L2/L3 switches

Transport Network : SDH, DWDM and OADMInternet : Broadband RAS, GSR, ServersIPTV : HPER, True VOD/Live TV/KOD Servers

ATM/GE SW

Billing

7

CHT Broadband Network Evolution

2005 2006 2007 2008 2009 2010

FTTB+xDSL

Ethernet-basedFTTB & P2P Media

Converter

FTTH WiMAX / B3G

10M High Quality Internet Surfing

Differentiated Service

Triple Play Service

1G

NetworkQuality Index

Network Migration Path

8

VoIPFunctions

InteractiveEnd to endFunctions

VPNFunctions

CDNFunctions

NomadicFunctions

Service/network control platform IMS

Service-specificfunctions

Sharing functions

Core transmission network

Access network

User network

Edge node Edge node

Core nodeCore node

NGN Architecture

Packet Switching

BroadbandTransport

End-to-endQoS

Open Interfaces

Con

trol

sig

nal

ing

tran

smis

sion

ne

twor

kCommunication Network

Op

erat

ion

an

d m

ain

tena

nce

netw

ork

OSS

Reference : APT NGN Workshop 2004 NTT RENA Architecture

Exercise 5 Years Out:

9

User Terminal

VAS and the Mesh Ecosystem

Traditional telecom service value chain Carrier-CPE-User

VAS/IMS era demands a brand new Mesh Ecosystem

User-based Cyberspace: (Home + Work + Leisure ) + Mobile

Personal Portal

Content Provision Service Provision

IMS-based Infrastructure (Fixed Mobile Convergence)

VAS (C-I-T-E)IMS

10

Lessons learned in BB Services

• Schools lead the way, and consumers follow• Affordable Tariff, lower and lower day by day• Rapid Provisioning, Excellent Customer Care • Excellent network Integration & Operations• Lower Equipment Costs• National Policy• Evolution Plan• From DSL, FTTB to FTTH• Triple Play Services• Amazon principle

11

Flat world is a healthy ecosystem

• The telecom business world is flat, if the platform is open, or more precisely, if it’s a standard.

• In this flat world, the stakeholders, including customers, equipment vendors, content providers, telecom service providers could easily plug and play.

• With this in mind, a healthy ecosystem

for telecom business might be formed and make all players in a win-win-and-win situation.

12

IP Changes the Telecom World

• IP brings the Internet, the Internet world is converging with the telecom world.

• The Internet brings not only VoIP, but also IPTV and triple play. Telecom business is on the way to retire PSTN and head on to the broadband business based on IP.

13

IMS is an open standard based on IP and SIP

• IMS (IP Multimedia Subsystem) is a standard and gaining increased momentum and will have a fundamental impact on telecom business.

• IMS is an open and standardized architecture based on IP and SIP (Session Initiate Protocol) for telecom business including fixed, wireless and cable services.

14

The new competitive battlefield is in VAS (Value Added Services)

• The competitive battlefield is taking place in VAS (Value Added Services) and new applications for the end user of these services.

• Rich media content is here. • The business and the technical issues -

what to do and how to do it - are united.• At the end, it is about a future world of

broadband access anywhere to any content from any device and anywhere.

15

Exercise 5 Years Out

Through this flat ecosystem, everyone could run his own business, and the business is opened up to everyone else. The ecosystem makes world flat eventually.

Exercise 5 Years Out -Mobile phone in your hand -Electronics in your living room -Your company -Your home -China and India, and also the USA

Thanks for your attention!